However, the report noted that, in value terms, American
gold jewelry sales in the first quarter of 2011 reached $914.4 billion, a 12
percent jump over last year’s first quarter, due mostly to the higher price.

The report added that the price of gold has increased 25
percent from the first quarter of 2010, and predicted it would continue to rise.

It said that investment demand has been driven by high
inflation, and unrest in the Middle East and Northern Africa. These conditions are still there, it said, along with ongoing financial problems in Europe.